- Shiba Inu (SHIB) sees a 200% surge in trading volume amid a 2% price increase, sparking speculation of a potential price rally.
- Technical indicators suggest bullish momentum as SHIB respects support levels, with community-driven token burns and major brand adoption adding to its long-term growth prospects.
Shiba Inu (SHIB) enthusiasts and investors have reason to celebrate as the beloved meme coin makes headlines once again. After a recent resurgence in the crypto market, SHIB has experienced a remarkable spike in trading volume, surging by over 200% in the past 24 hours. But what does this mean for its price trajectory?
With a modest 2% price increase, SHIB continues to capture the attention of traders, currently trading at $0.00002352 with a market cap of $13.8 billion. The surge in trading volume could potentially signify the return of bullish sentiment, hinting at a possible rally in the near future.
Bullish Signals Emerge as SHIB Prepares for Potential Upside
Technical indicators paint a mixed but promising picture for SHIB’s price movement. The token has recently respected the lower band of the Bollinger Band indicator, suggesting a positive trend reversal. Additionally, SHIB is hovering around the 20-day Simple Moving Average (SMA) line, indicating potential support levels.
However, a bearish trendline looms over the market, marked by the Blue line. Breaking above this trendline could catalyze further buying activity, propelling SHIB’s price upward. The Relative Strength Index (RSI) currently sits at 46, hinting at oversold conditions but also indicating a neutral stance. A move above 50 on the RSI could signal renewed buying interest, potentially fueling a rally.
Furthermore, the Moving Average Convergence Divergence (MACD) indicator displays bullish signs, with the MACD line above its signal line and green bars indicating bullish momentum. Despite trading below the 50-day SMA, SHIB faces resistance at this level, which could impede its upward trajectory. However, a break above this resistance level, accompanied by increasing buying volume, could pave the way for further upside potential.
Shiba Inu Community Drives Token Burn
We love SHIB!
— CoinGate (@CoinGatecom) May 10, 2024
To prove that, we have added #SHIB support for #Polygon and Binance Smart Chain.#Shibarmy, use your $SHIB to book Airbnb, grab the latest games from Steam & PS5, refresh your wardrobe with Nike & Zalando and more!
Explore all options: https://t.co/bhrB9i7OrF pic.twitter.com/2dS2JVD3V8
One notable factor contributing to SHIB’s potential price surge is the proactive stance of the Shiba Inu community. Consistently burning SHIB tokens, the community has demonstrated its commitment to reducing the coin’s supply. Recent data from Shiba Inu tracker Shibburn reveals that over 200 million SHIB coins were burned as of May 12, resulting in a 338% spike in burn rate. This reduction in supply, coupled with increasing demand, could exert upward pressure on SHIB’s price over time.
Major Brands Accept SHIB: A Catalyst for Adoption
In addition to community-driven initiatives, the adoption of SHIB by major brands like CoinGate adds another layer of utility to the meme coin. With the integration allowing SHIB holders to make purchases from renowned brands like Nike and Zalando, SHIB gains practical use beyond speculative trading. This increased utility could attract new investors and foster broader adoption, potentially driving SHIB’s long-term value.
While SHIB’s recent surge in trading volume and community-driven initiatives bode well for its price outlook, investors should remain vigilant and await confirmation before making trading decisions. With bullish signals emerging and adoption on the rise, SHIB stands poised for a potential price surge, but only time will tell how the market unfolds.
